Market News
Australia's central bank cuts rates to 2-year low of 3.85% - REUTERS
SYDNEY, May 20 (Reuters) - Australia's central bank on Tuesday cut its main cash rate by 25 basis points to a two-year low of 3.85% citing a darker global outlook and cooling inflation at home, though it also remained cautious on further easing.
The Australian dollar fell 0.4% to $0.6430 and three-year bond futures rose 5 ticks to 96.40. Swaps imply a total easing of 57 basis points by the end of the year.
Wrapping up a two-day policy meeting, the Reserve Bank of Australia said upside risks to inflation had diminished while international developments were expected to weigh on the domestic economy.
